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HMRC internal manual

Employment Income Manual

Tax treatment of insurance agents: commission and discounts available to the general public

Where an employee receives a commission, as defined in the Statement of Practice SP4/97 (see EIM64605), on the same basis as is available to other members of the public, the commission will not arise from the employment and will not count as earnings for tax purposes. An example of such a commission is where a washing machine manufacturer offers a refund of £50 to every purchaser of a new machine. If an employee of the manufacturer buys a new machine and receives a generally available £50 refund, no tax charge will arise. Similarly, if an employee pays a net or discounted amount, which is calculated on the same basis as amounts available to members of the general public, no chargeable benefit will result.